Music License For Restaurant

Music License in order to play music in Restaurants

Music License are required to obtain by all the businesses where activities such as playing pre-recorded music / songs in the form of music Cassette, Gramophone records, Radio, TV, CDs, or in Audio-Visual form, etc are carried out, according to the Copyright Act, 1957. For playing music in public places for any commercial purposes, it is mandatory for all to obtain license.

Before anyone start playing music in restaurant or café, license for Sound Recording which is Phonographic Performance Limited {PPL} is to be obtained which is provided by the Copyright Society.

If you hire any singers to sing songs or plans to conduct a live concert or a band etc in your business premises then you will need to obtain the Indian Performing Rights Society {IPRS} License.

So basically there are two types of music license based on the method you perform or play music at your work-place namely;

What is Copyright Society?

A national society which is formed by all the owners of the musical works keeps watch on the way the work of the musical owner is being used by the customers in a Copyright Society.

In order to eliminate the task of taking permission to play songs from everyone i.e. from rightful owner of a song recorded. The concept of Copyright Society is being introduced to grant licenses to consumers

What are the advantages of Copyright Society?

The core benefit of the Copyright Society is that it provides license to consumers without much difficulties and it also helps the owners to keep monitoring the way their work is being utilized by the customers.

Copyright Society is required to renew its registration after 10 years as it is registered under the Section 33(3) of the Companies Act 2013 for a period of 10 years. Copyright Society is allowed to issue license to the user of the work of its members under the Section 30 of the Copyright Act. In case where anyone does not comply with the provision of the Copyright Act then in such cases prosecution shall be carried out against them.

To play recorded music such as playing from CDs or Radio in a café or restaurant, you need to register yourself with the Copyright Society.

Registration with the Copyright Society named Indian Performing Rights Society {IPRS} is required to obtain in case of a live concert or band performance where only lyrics and musical scores are used.

What are the compliances / norms of the Phonographic Performance Limited (PPL)?

It is a United Kingdom (UK) based organization founded in May 1934 by two record companies namely Decca Records and EMI and this organization is based on music licensing and performance rights organization. Phonographic Performance Limited (PPL) holds the royalties of more than 1, 00,000 performers and recording right-holders in the year 2019, according to the records.

PPL (Phonographic Performance Limited) license is required to obtain by all the businesses in order to be able to play music at public places in any pre-recorded form such as CDs, Radio, TV, etc. United Kingdom defines the term “Playing in Public” as playing music anywhere outside the domestic setting like public events, workplace, or any other workplace and before playing any music, one needs prior license for the same.

Permissions are granted to the holder of the Phonographic Performance Limited (PPL) to play music from the PPL’s repertoire or the commercially released music which are registered with the Phonographic Performance Limited (PPL). Licensing is not required for the music that is freely licensed or is not registered with the PPL’s copyright terms.

What is Indian Performing Right Society Limited (IPRS)?

It is a Copyright Society which allows the customers to use the Copyrighted Music Works by granting them licenses and collecting royalties on behalf of its members, such as composers, authors/lyricists and music publishers/music companies. Such collected royalties is then distributed among its members after retaining the administration costs incurred by the Indian Performing Right Society Limited (IRPS).

Why do anyone need to obtain Music License?

Protecting the rights of the composers, songwriters, and publishers are the main purpose of issuing the music license.

How much money is involved in obtaining Music License?

The fee of the Phonographic Performance Limited (PPL) license depends upon various factors such as;

  • Place type
  • Number of hours played
  • Number of songs played
  • Venue Capacity
  • Business type

Indian Performing Right Society Limited (IPRS) License is required to obtain in case the live performances at your business is conducted. Generally, the license fee for each Square feet of your building is Rs. 1.50/sq. feet and the minimum royalty under their tariff is INR 50,000, etc..

Who all are eligible to obtain a Music License?

In order to avoid penalty by playing pre- recorded music outside the personal/ domestic setting i.e. at a public places then license must be required. Such public place may be a restaurant, cinemas, offices, product launch, malls, hotel, pubs, events, aircrafts or any other places. In other words, in a place music is played for gaining some profit.

Performing the following activities require license Indian Performing Right Society Limited (IRPS);

  • Performances in public
  • Performances of Band
  • Singers performing at your business premises
  • Any other activity other than playing pre-recorded music

How and from where to obtain this License?

Prescribed application form in the prescribed format is required to be filled in case you want to obtain registration under Phonographic Performance Limited (PPL) and Indian Performing Right Society Limited (IPRS). After that you are required to check the tariff schemes of the related society and according to which you need to make the payment.

Which Documents are required to be submitted to obtain the Music License?

Following documents would be needed to submit:

  • Basic personal information such as, name, address, nationality, etc.
  • Details regarding the type of business you are engaged into
  • In case your business is an LLP, you would need to submit your certificate of Incorporation
  • Details regarding the type of music you will play.
  • Registration certificate of Goods and Services Tax (GST).
  • Permanent Account Number
  • Documents for Address proof (Electricity bill, Driver’s License, Voter Identity Card, etc.)
  • Any other documents as applicable.

What are the penalties for the offender?

Section 63 and 63 A. of the Copyright Act defines the punishments in case a person / entity or business does not avail registration with the Copyright Society and performs such activities as defined in the Section 51 of the Copyright Act then such person /entity or business shall be liable for such punishments.

Punishments according to Section 63 are mentioned below where any person infringes the copyrights or other rights:

  • Imprisonment for a period not less than 6 months and which may extend to 3 years and
  • Fine which shall not be less than INR 50,000 and which may extend to INR 2, 00,000

Punishments according to Section 63 are mentioned below where any person infringes the copyrights or other rights and are repetitive offender;

  • Imprisonment for a period of not less than 1 year which may extend to 3 years and
  • Fine not less than INR 1,00,000 and which may extend to INR 2, 00,000.

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